Top tips for handling a Tenant that won’t pay
As a landlord, getting paid in a timely and efficient manner is crucial. But what are you meant to do if your tenant isn’t paying?
Retrospectively, when you first bring in a new tenant, it is good practice to open a good line of communication, so they fully understand when rent should be paid, and they can feel comfortable coming to you if a problem arises with payment. Going through the tenancy agreement with them and making sure they’ve read, signed and understood everything on the lease will provide good evidence if a problem occurs.
If you have attempted to reach out to them to discuss the problem without success, the next step would be to charge them a late fee. Although frustrating for the tenant, this will help motivate them to pay their rent on time in the future.
Reach out to Guarantors
You can also speak to their guarantor who may be able to assist the tenant and pay the rent on behalf of them. Keep conversations with the guarantor professional as they are most likely unaware of the problem and will be able to speak to the tenant on your behalf about why payment hasn’t been made.
If you have exhausted all other options, you may need to consider legal action to receive the money you are owed and potentially evict your tenant. A legal adviser and landlord bodies such as National Landlord Association can also provide useful advice and guidance on what steps you should take legally against your tenant. This is also where landlord’s insurance will be useful, as a rent guarantee cover provides legal cover, rent arrears and offers financial help once the property has been obtained through the courts.
Finally, if you are able to resolve the problem with your tenant, make sure the problem will not reoccur by speaking with your tenant and outlining the correct payment times and methods. At this stage, you could also issue a formal warning, to advise what will happen should they not pay on time in the future.
For more tips and advice on how to best manage tenants, make sure to join my HMO Community on Facebook: HMO PROPERTY COMMUNITY GROUP
Want to learn about investing in Property / HMOs?
Join us on one of our courses or phone the office on 01684 368468 to find out if property is for you.